Global insurance market report [gimar]

3.1.5 Conclusions
Non-affirmative cyber-risk remains prominent 
and a lack of standardisation in policy language 
has exacerbated this issue, resulting in many 
insurers being uncertain about their overall levels 
of exposure. Cyber-risk models are relatively 
immature due to the lack of underwriting 
experience and availability of data, paired with a 
volatile and fast-evolving risk. Insurers therefore 
rely on other methods of risk measurement, 
including individualised risk assessments, which 
provide policyholders with a map of risk mitigation 
guidelines but make it difficult for insurers to 

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engage in comparative pricing and assess their 
overall risk portfolio. Information sharing is critical 
but underused. The use of reinsurance and other 
risk-pooling mechanisms can help promote the 
flow of information while offering insurers the 
benefits of risk transfer.
Although many public and private initiatives 
and studies have collected information on
previous cyber-incidents, coordinated actions 
by supervisors will play a key role in streamlining 
the variety of data sources available to measure 
cyber-risk, encouraging the standardisation of 
data collection while maintaining the benefits of 
competition, and fostering information sharing 
to improve insurer underwriting and encourage 
market growth.
Insurers may not be fully aware of their overall 
risk exposure, which affects their ability to 
accurately calculate premiums, set appropriate 
limits and adopt appropriate pricing strategies. 
Given the evolving nature of the cyber-landscape, 
companies should demonstrate a continued 
commitment to developing their knowledge
of cyber-insurance underwriting risk. Supervisors 
need to share information and best practices
to enhance their own ability to evaluate the 
pricing and exposure of insurers within their 
jurisdictions. They also need to consider how 
they can support an integrated approach to 
cyber-risks that will adequately reflect the risk in 
insurers’ strategy and risk appetite. Initiatives are 
under way in several countries to foster greater 
risk awareness and to push insurers to adopt 
conscious risk management and supervision,
but additional efforts are required by both 
supervisors and insurers.